September house prices edge lower by 0.8%

According to the latest UK house price index statistics produced by Communities and Local Government, average prices increased over the year in England (6.5 per cent), Scotland (1.4 per cent) and Wales (8.8 per cent) but fell in Northern Ireland (-7.6 per cent) whilst prices paid by first time buyers were 4.6 per cent higher on average than a year earlier and prices paid by former owner occupiers increased by 6.7 per cent.

Prices paid for new properties were 5.6 per cent higher on average than a year earlier whilst prices for pre-owned dwellings increased by 6.2 per cent.

“This confirms the start of the trend we’ve seen over the last few months where there has been a continued reduction of many guide prices. Many of the reductions happening now are coming from sellers keen to move before Christmas, so some of that pressure will ease in the New Year. But the traditional influx of new properties for sale in early 2011 will also put pressure on prices if there is not enough demand to support them. The current scarcity of credit, has built up a backlog of buyers ready to fuel demand in the future but until lending criteria ease further it will be a while before these buyers can help support the market.”